function GJ_figureA4(parameters)


%% Parameter loadings

    X0      = parameters.X0;        % Initial cash flow level
    X       = parameters.X;         % Date-t cash flow level
    sigma   = parameters.sigma;     % Cash flow volatility
    mu      = parameters.mu;        % Cash flow growth rate
    r       = parameters.r;         % Risk-free rate
    tau     = parameters.tau;       % Corporate tax rate
    alpha   = parameters.alpha;     % Liquidation cost in default
    psi     = parameters.psi;       % Manager's equity ownership
    theta   = parameters.theta;     % Degree of corporate governance  
       
    
%% Select new parameter values
    
    % Alternative equity ownership calibration:
    new_psi_low     = 0.05;
    new_psi_high    = 0.2;

    % Alternative tax rate calibration:
    new_tau_low     = 0.1;
    new_tau_high    = 0.4;

    % Alternative liquidation cost calibration:
    new_alpha_low   = 0.3;
    new_alpha_high  = 0.8;

    % Alternative cash flow volatility calibration:
    new_sigma_low   = sigma-0.1;
    new_sigma_high  = sigma+0.1;
    

    %% Create range of shareholder protection levels
    data=[];
    data=1:0.1:20; % Range of theta to display

for i=1:length(data)

 parameters.theta = data(i); 
 [vol, ~] = corpo_static(parameters); % 
 vol_baseline(1,i) = vol;
 
 % By manager's equity ownership
 parameters.psi = new_psi_low;
 [vol_psi_low(1,i), ~] = corpo_static(parameters); 

 parameters.psi = new_psi_high;
 [vol_psi_high(1,i), ~] = corpo_static(parameters); 
 parameters.psi = psi; % Use the baseline value for the next analyses
 
 % By tax rate
 parameters.tau= new_tau_low;
 [vol_tau_low(1,i), ~] = corpo_static(parameters);
 
 parameters.tau= new_tau_high;
 [vol_tau_high(1,i), ~] = corpo_static(parameters); 
 parameters.tau = tau; % Use the baseline value for the next analyses
 
 % By liquidation cost
 parameters.alpha= new_alpha_low;
 [vol_alpha_low(1,i), ~] = corpo_static(parameters);  

 parameters.alpha= new_alpha_high;
 [vol_alpha_high(1,i), ~] = corpo_static(parameters);  
 parameters.alpha = alpha; % Use the baseline value for the next analyses
 
 % By cash flow volatility
 parameters.sigma= new_sigma_low;
 [vol_sigma_low(1,i), ~] = corpo_static(parameters); % 

 parameters.sigma= new_sigma_high;
 [vol_sigma_high(1,i), ~] = corpo_static(parameters); % 
 parameters.sigma = sigma; % Use the baseline value for the next analyses

end 


%% Create figure

% Figure A.3: Corporate governance and equity volatility – Different calibrations

Height = 900; Width = 600;
linewidth = 2;

hfig=figure;
set(hfig,'Position',[232 100 Height Width],'PaperPositionMode','auto','InvertHardcopy','off')

subplot(2,2,1)
hl1 = line(data,vol_psi_low/vol_psi_low(end),'Color','k');
hl2 = line(data,vol_psi_high/vol_psi_high(end),'Color','b');
ylabel('Equity volatility (normalized)','Interpreter','latex');
ax1 = gca;set(ax1,'XColor','k','YColor','k');
set(hl1,'LineStyle','--','LineWidth', linewidth);
xlim([min(data),max(data)]);
set(hl2,'LineStyle','-','LineWidth', linewidth);
title('BY EQUITY OWNERSHIP (A)','Interpreter','latex'); grid on
legend1 = legend([hl1,hl2],'Low ownership ($\psi=0.05$)','High ownership ($\psi=0.2$)','Location','NE');
set(legend1,'EdgeColor',[1 1 1],'Interpreter','latex');
xlabel('Corporate governance, $\vartheta$','Interpreter','latex');    

subplot(2,2,2)
hl1 = line(data,vol_tau_low/vol_tau_low(end),'Color','k');
hl2 = line(data,vol_tau_high/vol_tau_high(end),'Color','b');
ylabel('Equity volatility (normalized)','Interpreter','latex');
ax1 = gca;set(ax1,'XColor','k','YColor','k');
set(hl1,'LineStyle','--','LineWidth', linewidth);
xlim([min(data),max(data)]);
set(hl2,'LineStyle','-','LineWidth', linewidth);
title('BY TAX RATE (B)','Interpreter','latex'); grid on
legend1 = legend([hl1,hl2],'Low taxes ($\tau=0.1$)','High taxes ($\tau=0.4$)','Location','NE');
set(legend1,'EdgeColor',[1 1 1],'Interpreter','latex');
xlabel('Corporate governance, $\vartheta$','Interpreter','latex');    

subplot(2,2,3)
hl1 = line(data,vol_alpha_low/vol_alpha_low(end),'Color','k');
hl2 = line(data,vol_alpha_high/vol_alpha_high(end),'Color','b');
ylabel('Equity volatility (normalized)','Interpreter','latex');
ax1 = gca;set(ax1,'XColor','k','YColor','k');
set(hl1,'LineStyle','--','LineWidth', linewidth);
xlim([min(data),max(data)]);
set(hl2,'LineStyle','-','LineWidth', linewidth);
title('BY LIQUIDATION COST (C)','Interpreter','latex'); grid on
legend1 = legend([hl1,hl2],'Low cost ($\alpha=0.3$)','High cost ($\alpha=0.8$)','Location','NE');
set(legend1,'EdgeColor',[1 1 1],'Interpreter','latex');
xlabel('Corporate governance, $\vartheta$','Interpreter','latex');    

subplot(2,2,4)
hl1 = line(data,vol_sigma_low/vol_sigma_low(end),'Color','k');
hl2 = line(data,vol_sigma_high/vol_sigma_high(end),'Color','b');
ylabel('Equity volatility (normalized)','Interpreter','latex');
ax1 = gca;set(ax1,'XColor','k','YColor','k');
set(hl1,'LineStyle','--','LineWidth', linewidth);
xlim([min(data),max(data)]);
set(hl2,'LineStyle','-','LineWidth', linewidth);
title('BY CASH FLOW VOLATILITY (D)','Interpreter','latex'); grid on
legend1 = legend([hl1,hl2],'Low volatility ($\sigma=0.1$)','High volatility ($\sigma=0.3$)','Location','NE');
set(legend1,'EdgeColor',[1 1 1],'Interpreter','latex');
xlabel('Corporate governance, $\vartheta$','Interpreter','latex');    

end

